According to a latest research report, the strong growth in the Chinese market has caused the auto parts companies' products to be in short supply. In 2009, the profit rate of auto parts companies generally remained at 8%-10%. This level is Twice the global average will continue to grow in 2010.

The investigation agencies conducted in-depth visits to the 50 senior executives of Chinese domestic and foreign auto suppliers and automakers, as well as conducted in-depth research on the Chinese auto industry. They believe that although the global auto market has been shrinking in 2009, the Chinese market has seen strong growth. The products of auto parts companies are always in short supply. Although the prices of steel, copper, rubber and other products are all at historical highs, they are just offset by the low prices of human resources in China, making the profit rate of parts and components companies generally maintained at 8%-10%. This level is global. Twice the average level.

“This profit level is also 2% higher than that of the entire vehicle company. In 2009, the average profit level of the automobile industry was between 6% and 8%,” said the authoritative survey agency. In 2009, the profit rate of China's auto parts suppliers was significantly higher than that of the global counterparts, which were generally loss-making at the time.

"Because of the high market demand in 2009, OEMs are willing to accept unacceptable prices. The relationship between supply and demand leads to high profitability of auto parts," analysts said.

At the same time, several of China's heavyweight local auto parts companies have also entered the field of vision. "Some companies such as Wanxiang Group and Weichai Power have already entered the top 100 global sales."

Wanxiang Group's 2009 annual report shows that in 2009, sales revenue was 51.48 billion yuan, an increase of 13%; profits and taxes were 5.72 billion yuan, an increase of 48%.

Lu Guanqiu, chairman of Zhejiang Wanxiang Group’s board of directors, is also very proud of his achievements. “In the most ups and downs of the year, he created the best performance and calmly completed the fourth task of “fighting for a decade”. ”

The latest "China Automotive Parts Industry Investment Analysis and Prospects Forecast Report 2010-2015" published by China Investment Advisor also coincides with the above-mentioned data conclusions.

The report pointed out that the current strength of the automotive industry and the strength of the manufacturing industry are potential advantages for the development of the auto parts industry. China has gradually become the focus of the global automobile assembly and component giants, which will bring continuous and good development opportunities for the development of China's auto parts industry. It is estimated that in 2010, the domestic output value of auto parts in China will reach around 700 billion yuan. With the improvement of global economic conditions, China's spare parts exports will increase by about 10% between 2010 and 2011.

At the same time, the survey report showed that the major challenges China’s auto parts manufacturers will face in 2010 are “In addition to rising raw material prices, pressure from price reductions from vehicle manufacturers and price competition among suppliers will increase. Difficulty for parts manufacturers to operate."

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